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HomeMy WebLinkAboutCity Council Item No. 14CITY OF LSIA0 DREAM EXTREMETM REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: MARCH 24, 2009 SUBJECT: AMENDMENT(S) TO PYRAMID ENTERPRISES AND DESTINATION RV RESORTS AGREEMENT(S) Background The City received ownership of the 35 year old Campground from the State of California in 1992. In December 2001, the City entered into a concessions agreement with Pyramid Enterprises Inc. to manage the Lake Elsinore Campground. The intent of this agreement was to turnover daily operations and maintenance of the facility to Pyramid Enterprises. No significant capital improvements were contemplated under this agreement. This agreement is set to expire on January 2, 2010. In 2004, Pyramid Enterprises partnered with a private investor, Fred Rice, and proposed improvements to the Campground to transform the facility into a five star RV Resort. This new company was named Destination RV Resorts. In January 2005, the City Council approved a long term Concessions Agreement with Destination RV Resorts. In exchange for the concession rights, Destination RV Resorts is required to invest a minimum of $17- million of qualified improvements and the City would receive 5% of gross revenue. Attached are "highlights" of the agreement. On April 15, 2006 the Company gave the City a $50,000 non - refundable deposit, which is the "Effective Date" of the agreement. This triggered a three (3) year Development Period that is set to expire on April 15, 2009. Destination RV Resorts has invoked a "Force Majeure Term Extension" clause in the agreement, which extends the agreement for one year to April 15, 2010. City Staff desires to extend the two agreements until January 31, 2011 for the purpose of obtaining the goal of revitalizing the Campground utilizing private funds and coordinating the expiration dates for both agreements, as well as obtaining consent on the stipulations contained in the amendment. The City's Financial Consultants, Rod Gunn and Don Hunt, directed Staff to clearly separate the City's Boat Launch Facility Project from the private campground project by amending the Concessions Agreement in order to facilitate public financing of the Boat Launch Facility Project. Agenda Item No. 14 Page 1 of 17 Amendments Concession Agreements March 24, 2009 Page 2 Discussion The main hurdles for Destination RV Resorts to complete the development have been past difficulties in securing financing, as well as technical and financing issues related to relocating the sewer lift station on Riverside Drive. This is an exceedingly difficult project to obtain conventional financing, because the City must always retain ownership of the property. Typically, lenders require the land to be owned by developers, so that the lender can hold a collateralized interest in the property. According to the Managing Member of Destination RV Resorts, the Company has received commitment letters from private investors and is close to obtaining commercial financing necessary to fund the project. Furthermore, City Staff has been informed that financing will be forthcoming once the City has awarded the bid for construction of the Boat Launch Facility Project. The second development hurdle occurred when Cal -Trans required the project to widen Hwy -74 and provide a deceleration lane for patrons entering the newly redeveloped Campground Facility at the intersection of Lincoln Avenue and Hwy -74. This requirement caused a domino effect that subsequently requires the relocation of EVMWD's sewer lift station along Hwy -74. Building a new sewer lift station is estimated to cost $2.5 million. In addition, water and sewer connection fees are estimated at $2.1 million. Destination RV Resorts and their prospective lender claim this is too high a capital cost and is literally, money down the drain. These issues are being worked through, but need additional time to resolve. Destination RV Resorts has made a good faith effort to move through the development process and has demonstrated progress. For example, the Company has complied with CEQA, prepared detailed plan drawings and received design approval from the City. The Rocky Mountain Recreation Company, a division of Pyramid Enterprises Inc., manages over 255 public Campgrounds, Day Use Areas and Boat Launch Facilities for Federal, State and Local Agencies. Among this Company's clientele are Castaic Lake, Lake Perris, Silverwood Lake and Lake Skinner. The Company's managed services include the operations and maintenance of marinas, campgrounds, water recreation facilities, fast food service, fuel docks, boat rentals, bait and tackle stores and the sale of sundry items and services. (Please see attachments). The City's agreements with Pyramid Enterprises Inc. and Destination RV Resorts are two separate agreements that are highly inter - dependent. Both agreements are set to expire in about one year. By extending the agreements until January 31, 2011, the City will allow additional time to obtain the mutually beneficial goal of revitalizing the Lake Elsinore Campground. Furthermore, City Staff anticipates receiving the remaining environmental permits for the Boat Launch Facility Project by the end of May 2009 and Agenda Item No. 14 Page 2 of 17 Amendments Concession Agreements March 24, 2009 Page 3 advertising for public bid in June 2009. If a successful bid is obtained within the engineer's estimated budget, then a financing plan will be presented to the City Council for consideration. If approved, the project can be completed by June 2010. In summary, the amendment to the concession with the Pyramid Enterprises will extend the termination date of that concession until January 31, 2011. The amendment to the concession with Destination RV will recognize that general economic conditions have prevented development and provide that the "development period" be extended to January 31, 2011. This amendment also provides clarification regarding construction access, provides for the reimbursement to the City for visitor safety improvements at the Campground once Destination RV goes forward, coordination of sewer connections, and subjects the Boat Launch to a separate future concession agreement in order to assure that that the existing concession agreement does not conflict with any tax - exempt financing that may be utilized for financing of the Boat Launch improvements. Fiscal Impact By approving the agreements, the City will continue to receive 7% of Pyramid Enterprises gross revenues from the concessions of the Lake Elsinore Campground and Seaport Boat Launch Facility. If the Destination RV Resorts project comes to fruition, then the City will annually receive the greater of $250,000 or 5% of gross receipts. Recommendation Approve the two amendments listed below and authorize the City Manager to execute such amendments subject to such minor modifications as may be approved by the City Attorney. 1. "Second Amendment to the Lake Elsinore Campground and Day Use Facility Concession Agreement" with Destination RV Resorts. 2. "First Amendment to the Amended and Restated License Agreement for Operation of the Campground, Day Use and Boat Launch Concession at the Lake Elsinore Recreation Area" with Pyramid Enterprises. Prepared by: Pat Kilroy Director of Lake and Aquatic Resources Approved by: Robert A. Brady City Manager l�V Attachments: 1. Highlights of 2005 Agreement with Destination RV Resorts 2. Reference Material for Pyramid Enterprises /Rock Mt. Rec. Co. Agenda Item No. 14 Page 3 of 17 Highlights of Concessions Contract With Destination Resorts ♦ Proposed Concessionaire • Destination R.V. Resorts, LLC • Principals: • Chet Roberts, President Pyramid Enterprises ■ Fred Rice, Developer /Businessman, Sunstone Winery Term of Contract: o 55 -Years (Combined Term) • Initial Term = 40 years. ■ Option to Extend = 15 years. Qualified Improvements: • $17- million • First Class R.V. Resort & Campground • Example - Business Plan, Master Site Plan & Contract Descriptions. ■ 430 RV sites, 50 tent campsites, R.V. rental units, clubhouse, pool, etc... Commencement Date: o Following development period and completion of qualified improvements. Effective Date: o Immediately following approval of contract by the City Council and $50,000 non - refundable deposit delivered to City. + Development: • Development Period = 3 years • Submittals: • Development Plan ■ Operating Plan ■ Safety Plan • Landscaping Plan • Facilities Maintenance Program ■ Maintenance Reserve Fund 1 Assurance of Project Completion: o Completion Bond Concession Fees: o Development Period: (0 to 3 years) ■ Effective Date to Commencement Date ■ $50,000 non - refundable deposit paid to City, credited back against first $50,000 concession fees paid to City following "Commencement' year. 7% of Pyramid Enterprises gross receipts. Start-up Period: (3 to 8 years) ■ Greater of $150,000 annually or 5% of gross receipts (Monthly Payments). • Credit for initial deposit = $50,000. ■ Credit for Lake Department HQ = $300,000 Regular Operating Period: (8 -43 years) • Greater of $250,000 annually or 5% of gross receipts (Monthly Payments). Agenda Item No. 14 Page 4 of 17 About Rocky Mountain Recreation Company Page 1 of 1 CAMPGROWNDS :.I LAKE FACILITIES I RaCReAY1GN I'. COMPANY Rocky Mountain Recreation Company has been a leader in the managed recreation industry for 30 years. We provide management services to campgrounds, marinas, day use areas and other recreation sites for Federal, State and Local Agencies. These services include the maintenance and management of marinas, campgrounds, water recreation facilities, fast food service, fuel docks, boat rentals, bait and tackle stores and the sale of sundry items and services. Our mission at Rocky Mountain Recreation is to optimize the recreation potential of our natural environment while preserving the inherent characteristics of the area, and to offer our guests the best customer service, ensuring they leave with a positive and memorable experience. Rocky Mountain Recreation is sensitive to the needs of the wider range of forest users. Our extensive employee training ensures that all employees, from maintenance staff to camp hosts understand the partnership between our guests and our staff. Our staff will be happy to use our decades of managerial experience to ensure you and your family enjoy the camping or boating experience you are looking for. From our headquarters in Southern California, our goal is to provide a clean, safe and enjoyable place for you to enjoy the outdoors. A A Division of Pyramid Enterprises www. RockyMountainRee.com Copyright © 2006 Rocky Mountain Recreation. All rights reserved. Agenda Item No. 14 Page 5 of 17 http: // www .rockymountainrec.com /about.htm 3/16/2009 Castaic Lake Page 1 of 2 CAMPOROUNeS :) LAKE 5ACtLIT19S I RECREATION t COMPANY Castaic Lake is located within the Angeles National Forest just 15 minutes north of Six Flags Magic Mountain and 5 minutes from 1 -5. Castaic Lake is r _ a holding reservoir for part of the western regions irrigation water supply. 1 4, rl The Castaic Lake Dam is 425 feet high and holds 350,000 acre feet of EYE water at full capacity. Castaic Lake is surrounded by 8,800 acres of recreational land. Castaic Lake consists of two bodies of water; the upper For Fishing Information or main lake which has approximately 29 miles of shoreline and the lagoon or Boat Rentals call or lower lake has approximately 2 miles of shoreline. (661) 775.6232. For Lake information call (661) 257.4050. SERVICES: You will find Castaic Landings located at the Main Launch ramp which is Castaic Lake's one stop tackle shop where you will find, live bait, tackle and lures, snack food, beverages, fishing boat rentals, and expert advice and assistance. You may also purchase your California Department of Fish & Game fishing licenses at Castaic Landings. In the upper lake to the North East is the "Fish Arm" which has numerous coves and lots of structure for fish to hide. To the North West is the "Ski Arm" where the pleasure boater, water skiers, and wake boarders can enjoy a day of boating. Personal watercraft such as jet ski's and sea doe's also have sectioned off area directly in front of the main launch ramp along side the dam, where no private or fishing boats are permitted. There is no swimming at the upper lake; you may however swim at the designated beach areas at the lower lake. For more information, photos, and upcoming events click here. FISHING: Fishing at Castaic Lake produces a variety of fish which continue to bite throughout the year. Anglers 16 year of age or older must purchase a Department of Fish & Game fishing. The Department of Fish and Game stock both the upper and the lower lakes with Rainbow Trout from October through March with an estimated combined total of 40,000 pounds per season. For fishing regulations, visit the California Department of Fish and Game. Other species of fish include Largemouth Bass, Striped Bass, Bluegill, Black Crappie, Carp, and Channel Catfish. You can call the marina for the most recent fish report. You can fish 24 hours a day at the lower lake; the upper lakes hours of operation change according to the season, for these hours click here. Castaic Lake holds numerous records for Bass fishing; Bass up to 22 pounds have been caught in the upper lake and up to 17 pounds in the lower lake. The Lake records for Striper Bass is 43 pounds to date, and has yet to be broken. http:// www. rockymountainrec.com/lakesAake- castaic.htm Agenda Item No. 14 Page 6 of 17 3/16/2009 Pike -San Isabel National Forest, CO Page 1 of 3 CAMPGROUNDS '.I LAKE FACILITIES I 6tVc REAYAON l COMPANY A Camping RV Hookup "& Group Sites in Fill Day Use Hiking Facilities & Recreation Horse Traits Fishing Biking Leadville Wildlife Water Sports Swimming Dexter Boating OHV Snack Bar d Store Nearest Town am round Facilities & Recreation Leadville, CO Baby _Doe � y A 1YU CI Leadville Belle of Colorado „ X. M 3 Leadville Dexter y , � 0X Leadville Elbert Creek , Y17.7 A� Leadville Father Dyer y �. 44 A � X. AA A Leadville Helfmoon East& West i y 4 Leadville Lakeview y .. A � Akft , 0 Leadville Matchless Leadville May.,.Qpeen,} Leadville Molly-Brown ,'.`, "T. 0 Leadville Parry Peak . A w Udt k Leadville Pond erosa_(Lakelsabel) Leadville Printer Boy X& Y1Yl A yr Leadville Silver Dollar A Leadville $pruce.(Lak..a....lsabe Leadville Tabor '' I 1 YA (#b A ; A Leadville win Peaks A -IN- J y Al X Leadville hitestar Y — e s A �FAAc�b Pikes Peak, CO ._ Pikes Peak Crags Pikes Peak Manitou Pikes Peak Meadow Ridge Pikes Peak Meadow.s_G...ro..up Pikes Peak Soquth Meadows Pikes Peak Painted Rocks Pikes Peak Pike Community Pikes Peak Red Rocks Pikes Peak Springdale Pikes Peak ._ Ridge Pikes Peak imberline ................ Pikes Peak Wildhom Ruby Mountain, CO IRuby Marsh Buena Vista, CO Boot Leg L A Buena Vista _ascade y Oft A f lAA1 Agenda Itern http: / /www.rockymountainrec.com/camp /pike.htm o. 14 Page of 17 3/16/2009 Pike -San Isabel National Forest, CO Page 2 of 3 Buena Vista .„ halk.Lake A ! U X. Buena Vista Collegiate Peaks A 'SA' J f m A Buena Vista Cottonwood Lake A rl0 11 A Buena Vista Iron City y (} , X '' ft A Buena Vista Mt,,_Pd-nceton y. b J �� A. alida, CO _ngel of Shavano d fi�A& J l ft X * alida Brown's Creek alida oaldale Y A YU MX 44" alida Hayden Creek y 6 litT alida Monarch Park y � M A A y Y1Y Salida N orth Fork y y A �,JAxft.4 Salida .,..,'l aver X 'i j U A. Salida hirley Site y X J U A. S an Carlos, CO AIvarado S an Carlos Bear Lake S an Carlos Blue Lake S an Carlos Davenport S an Carlos La Vista an Carlos Lake Creek San Carlos Dphir Creek San Carlos Purgatoric San Carlos Sou S San Carlos Saint Charles ouch Platte, CO Big Turkey outh Platte Buffalo outh Platte Burning Bear outh Platte Dear Creek outh Platte Devil's Head outh Platte Equestrian outh Platte Flat Rock S outh Platte Geneva Pass S outh Platte oose Creek S outh Platte 3reen Mountain S outh Platte Hall Valley South Platte Handcart S outh Platte Indian Creek S outh Platte Jackson Creek South Platte Kelsey S outh Platte Kenosha Pass S outh Platte Lone Flock S outh Platte Meredian S outh Platte Molly Gulch outh Platte sprey outh Platte uzel outh Platte Platte River outh Platte craggy View outh Platte hiteside outh Platte Nigwarn For more information on this forest, click here. www. RockyMountainReacom http: / /www.rockymountainrec.com/camp /pike.htm Agenda Item No. 14 Page 8 of 17 3/16/2009 Los Padres National Forest, CA Page 1 of 1 CAMPGROUILoa :j LAKE FACILITIL25 I RECREATION I, COMPANY A Camping Facilities & Recreation Day Use Hiking y y, A A& 0 4; A .�V Horse Trails; _.,,_heeler Gorge Z RV Hookup Hglday Fishing [✓ } Biking McGill Wildlife Mount Pinos AA Group Sites Santa Barbara Water Sports Swimming ( Boating Wr OHV Snack Bar Store Nearest Town Campground Facilities & Recreation G reenfield ._ rroyo Seco y y, A A& 0 4; A .�V O jai _.,,_heeler Gorge y A .{ , O jai Hglday y A Mount Pinos McGill A A �3X Gt Mount Pinos Mount Pinos A 41 Santa Barbara Fremont. A X S anta Barbara Paradise . y A A'; S anta Barbara Los_Prietos , j S anta Barbara Sage Hill + S1 Santa Barbara Upper Oso A X 4A Nearest Town Day Use Facilities & Recreation S anta Barbara Lower Oso S anta Barbara Live Oak Santa Barbara Falls - > Santa Barbara Red Rock -( S anta Barbara Nhite Rock For more information on this forest, click here. www. RockyMou Main Rec.com Copyright © 2006 Rocky Mountain Recreation. All rights reserved. http: / /www.rockymountainrec.com/camp /padres.htm Agenda Item No. 14 Page 9 of 17 3/16/2009 Humbolt - Toiyabe National Forest, NV CAMPGROUNDS I LAKE FAC L1YtEa I Rr CREAT4" 1" COMPANY A Camping _G RV Hookup A Group Sites Day Use ft Hiking Facilities & Recreation Horse Trails Fishing (} Biking. ells, NV Wildlife Water Sports Swimming (� Boating Page 1 of 1 OHV Snack Bar C ` Store Nearest Town Campground Facilities & Recreation N eils, NV _ Angel Creek A .Q; .^, + 4o ( 41 ells, NV _ngel_Lake A A * " ells, NV S outh Ruby y A -i . � ft A. Elko, NV T homas _Canyon For more information on this forest, click here. www.RockyMountainRoc.com Copyright © 2006 Rocky Mountain Recreation. All rights reserved. http: / /www.rockymountainree.com/camp /humbolt.htm Agenda Item No. 14 Page 10 of 17 3/16/2009 FIRST AMENDMENT TO THE AMENDED AND RESTATED LICENSE AGREEMENT FOR OPERATION OF THE CAMPGROUND, DAY USE AND BOAT LAUNCH CONCESSION AT THE LAKE ELSINORE RECREATION AREA THIS FIRST AMENDMENT TO THE AMENDED AND RESTATED LICENSE AGREEMENT FOR OPERATION OF THE CAMPGROUND, DAY USE AND BOAT LAUNCH CONCESSIONAT THE LAKE ELSINORE RECREATION AREA (this "Amendment'), dated for identification purposes only as of March 24, 2009, is made and entered into by and between the CITY OF LAKE ELSINORE, a municipal corporation (the "City ") and PYRAMID ENTERPRISES, INC. (the "Licensee "). RECITALS The Amendment is made with referenced to the following facts which are a substantive part hereof: A. City and Licensee have entered into that certain Amended and Restated License Agreement for Operation of the Campground, Day Use and Boat Launch Concession at the Lake Elsinore Recreation Area dated as of February 22, 2005 (the "Amended Agreement'). B. The City and Licensee desire to extend the term of the Amended Agreement. C. The Lake Elsinore Recreation Area ( "LERA ") was established by the State of California for the purpose of making available to the people for their enjoyment the natural, cultural, and recreational values of the largest natural lake in Southern California. D. The function of the City at the LERA is to manage, protect, and, where necessary, to restore its natural and cultural resources and values for their perpetuation in accordance with the public park and recreational purpose; to interpret these values effectively; and to provide facilities and services, consistent with the purpose of the park, that are necessary for the full enjoyment of the park. E. The City Council finds that it is appropriate that this Amendment is entered into to achieve the above stated purposes and to promote the safety and convenience of the general public in the use and enjoyment of, and the enhancement of recreational and park experiences at the Premises and the Boat Launch, that the concession is not being entered into solely for its revenue producing potential, that the concession is compatible with the Lake Elsinore Recreation Area General Plan, and that the license and will not result in the loss of public park space. Lake Elsinore Concession Amendment to Pyramid Concession 031609 Agenda Item No. 14 Page 11 of 17 NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions set forth herein, the parties hereto agree as follows: 1. Section 3 is hereby amended to read as follows: 3. TERM 3.1 The term of this Amended Agreement with respect to the Premises and the Boat Launch shall terminate on January 31, 2011. 3.2 Reserved. 3.3 Reserved. 3.3 In the event the Licensee holds over beyond the term herein provided with the consent, expressed or implied of City, such holding shall be from month to month only, subject to the conditions of this Amended Agreement; shall not be a renewal thereof; and shall be at the monthly compensation provided herein. 2. Except as expressly provided herein, all provisions of the Amended Agreement shall remain unmodified and in full force and effect. In the event of any inconsistencies between the terms and provisions of this Amendment and the terms and provisions of the Amended Agreement, the terms and conditions of this Amendment shall control. Lake Elsinore Concession Amendment to Pyramid Concession 031609 2 Agenda Item No. 14 Page 12 of 17 IN WITNESS WHEREOF, the parties have executed this Amendment on the respective dates set forth below. PYRAMID ENTERPRISES, INC., a California corporation DATED: 1 2009 By: Chet Roberts, President CITY OF LAKE ELSINORE, a municipal corporation DATED: 2009 By: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Lake Elsinore Concession Amendment to Pyramid Concession 031609 Agenda Item No. 14 Page 13 of 17 SECOND AMENDMENT TO THE LAKE ELSINORE CAMPGROUND AND DAY USE FACILITY CONCESSION AGREEMENT THIS SECOND AMENDMENT TO THE LAKE ELSINORE CAMPGROUND AND DAY USE FACILITY CONCESSION AGREEMENT (this "Second Amendment "), dated for identification purposes only as of March 24, 2009, is made and entered into by and between the CITY OF LAKE ELSINORE, a municipal corporation (the "City ") and DESTINATION RV RESORTS, LLC, a California limited liability company (the "Concessionaire "), with reference to the following: RECITALS The following Recitals are a substantive part of this Second Amendment. Capitalized terms used herein and not otherwise defined shall have the meaning set forth in Agreement. A. City and Concessionaire have previously entered into that certain Lake Elsinore Campground and Day Use Facility Concession Agreement, dated as of January 25, 2005 (the "Agreement "). B. Pursuant to Section 29.15(b), Concessionaire has timely notified City of Concessionaire' intent to exercise its right to the Force Majeure Term Extension due to general market conditions. C. The Parties desire to amend the Agreement. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Concessionaire hereby agree as follows: 1. Section 1.1 is hereby amended to restate the following definitions: "Effective Date" means April 15, 2006. "Campground" means the Lake Elsinore Campground and Day Use Facility as more particularly described in Attachment No. 1 and includes the Qualified Improvements, and such other improvements as contemplated herein or as may be provided by Concessionaire, provided, however that the Campground does not include the Boat Launch Plan Improvements except as may be provided by approval of the Parties consistent with Section 6.5. 2. Section 6 is hereby amended to read as follows: 6. CITY DEVELOPMENT OF BOAT LAUNCH 6.1 Intent City desires to enhance the public's use of the Campground and afford greater access to the LERA. To this end, City is planning to rehabilitate the existing boat launch and construct a new boat launch consistent with the design and scope set forth in the Boat Launch Plan. The City has received a firm commitment from the State to fund the improvements contemplated under the Boat Launch Plan (the "Boat Launch Plan Improvements "). Lake Elsinore Concession 2nd Amendment to Concession 031709 Agenda Item No. 14 Page 14 of 17 6.2 Construction Access Concessionaire hereby acknowledges that implementation of the Boat Launch Plan, construction of the Boat Launch Plan Improvements and future additional improvements will require reasonable ingress and egress to the launch area through the Campground for heavy construction equipment, materials and construction crews. The Parties agree to cooperate in securing such reasonable access to minimize disruption to Concessionaire during the Development Period and after the Commencement Date, as may be applicable, provided however, that such disruption, if any, shall not constitute a default under the Agreement. 6.3 Sewer Connection The Boat Launch Plan Improvements include a new restroom facility being constructed by the City. Under the original sewage disposal plan, the City would have connected the restroom facility to a new and permanent sewage disposal system constructed by Concessionaire. However, such system is not expected to be completed in time for connection to the new restroom facility. During this interim period, the City will need to construct temporary improvements for sewage disposal. The City may, at its option, install underground septic holding tanks for regular pump out by mobile septic trucks or, alternatively, connect to the existing sewer system. In association with construction of the Qualified Improvements, Developer shall pay for the construction costs to connect the restroom facility to the permanent sewer system and, additionally, shall reimburse the City for construction cost incurred by City for any part of the sewer line installed by the City that is subsequently reused by Concessionaire to complete the permanent sewer line. City shall pay its share of the cost for EVMWD's sewer connection fees. 6.4 Aquatic Safety During the Development Period, the City intends to implement a shoreline safety measure at the Campground to channel visitors to the shoreline through controlled access points for the purpose of communicating safety information. The City shall implement this shoreline safety measure in connection with construction of the Boat Launch Plan Improvements. Accordingly, as a condition precedent to the Commencement Date, Concessionaire shall reimburse the City for the cost to purchase and install approximately 1,000 feet of decorative fencing to channel visitors to the campground shoreline passed safety information signage. The reimbursement amount shall not exceed $60,000 and shall count towards the Qualified Investment. 6.5 Public Access following Completion; Parking; Additional Concession Concessionaire hereby acknowledges that the public's use of the Boat Launch Plan Improvements will require reasonable ingress and egress to the launch area through the Campground for members of the boating public and use of the designated boat launch parking area. The Parties agree to cooperate in securing such reasonable access consistent with Concessionaire's operation of the Campground and without additional charge to the City and the public (except for charges authorized by the City). The Parties shall reasonably consider and approve potential expansion of Concessionaire's duties to include operation of the Boat Launch Plan Improvements, provided that such approval does not interfere with or otherwise constitute a "private activity" as may be prohibited under the tax exempt financing contemplated under the Boat Launch Plan. Lake Elsinore Concession 2nd Amendment to Concession 031709 2 Agenda Item No. 14 Page 15 of 17 3. Section 28 is hereby amended to delete the following entity: With a copy to: c/o BCP Management, Inc. Attn: Paul Slye, Managing Member 11601 Wilshire Blvd., Ste. 1675 Los Angeles, CA 90025 4. Section 29.15(b) is hereby amended to read as follows: (b) Solely with respect to an extension of the Development Period of this Agreement (a "Force Majeure Term Extension "), Concessionaire shall be entitled to a Force Majeure Term Extension for a period until January 31, 2011 due to an inability to complete the Qualified Investment due to an inability to obtain financing or proceed with development as a result of general market conditions, interest rates, or other similar circumstances that make development impossible, commercially impracticable, or infeasible. Concessionaire shall notify the City in writing of Concessionaire's intention to exercise its right to the Force Majeure Term Extension no less than thirty (30) days prior to the expiration of the Term. If any such Force Majeure Term Extension shall continue for a period until January 31, 2011 and Concessionaire still is unable to complete the Qualified Investment for such reason(s) after and despite its exercise of commercially reasonable efforts to do so, Concessionaire shall not be deemed to be in default hereunder but City shall be entitled to terminate this Agreement upon fifteen (15) days written notice. 5. Except as expressly provided herein, all provisions of the Agreement shall remain unmodified and in full force and effect. In the event of any inconsistencies between the terms and provisions of this Second Amendment and the terms and provisions of the Agreement, the terms and conditions of this Second Amendment shall control. Lake Elsinore Concession 2nd Amendment to Concession 031709 3 Agenda Item No. 14 Page 16 of 17 IN WITNESS WHEREOF, the Parties have executed this Second Amendment as of the respective dates set forth below. "CITY" CITY OF LAKE ELSINORE, a municipal corporation Dated: 2009 By: ATTEST: CITY CLERK By: City Clerk APPROVED AS TO FORM: By: City Attorney "CONCESSIONAIRE" DESTINATION RV RESORTS, LLC, a California limited liability company Dated: 2009 By: Fred Rice, Manager Lake Elsinore Concession 2nd Amendment to Concession 031709 4 Agenda Item No. 14 Page 17 of 17